Iran Issues Pre-Qualification For Upstream Tenders

Iran is said to be targeting an increase in oil production from 3.85 to 4 million barrels per day by the end of 2016. Iran is also hoping to start export of a new heavy oil, called West Karun, and which is expected to compete with Iraq's Basra Heavy crude, which has gained a significant market with US and Asian refiners since its launch in 2015.

Iran's new upstream contract, the Iran Petroleum Contract (IPC), was delayed by parliamentary amendments but is now scheduled for launch in January 2017. The State-owned National Iranian Oil Company (NIOC) has already signed up an IPC with local firm, Persia Oil and Gas Development Company, which is one of eight Iranian contractors authorised to team up with international joint venture partners. Whilst Iran's production costs may be rock bottom, foreign investment (and currently foreign exchange) is needed to deliver scale and speed of development.